Summary of Settlement

1. There is a Class Action Settlement with Bristol-Myers Squibb (“BMS”) concerning the drugs Blenoxane®, Cytoxan®, Etopophos®, Paraplatin®, Rubex®, Taxol® and Vepesid® (referred to as the “BMS Drugs”).

2. The name of the lawsuit is In re: Pharmaceutical Industry Average Wholesale Price Litigation, Docket No. 01-C V-12257-PBS, MDL No. 1456 (D. Mass.).

3. The lawsuit claims that Third-Party Payors (“TPPs”) who reimbursed any portion of their insureds’ Medicare Part B co-payment or who reimbursed for these drugs outside of Medicare Part B based on the “average wholesale price” (“AWP”) paid more than they should have for these drugs.

4. The lawsuit claims the AWPs reported by BMS for the BMS Drugs were false and inflated. AWPs were used to set the amount Medicare Part B, and most private insurers reimbursed for these drugs. BMS denies any wrongdoing and is settling to avoid the burden and expense of continued litigation.

5. BMS has agreed to pay $19 million to settle claims of TPPs as well as consumers who made percentage co-payments based on AWP.

6. Under the terms of Settlement, 77% of the Settlement funds, minus certain fees and expenses, will be used to satisfy the claims of TPPs who file claims. The remaining 23% of the total Settlement amount, minus certain fees and expenses, will be set aside exclusively to satisfy the claims of consumers.

7. Generally speaking, you are a member of one of the Settlement Classes:

   If you reimbursed any portion of an insured’s Medicare Part B co-payment for any of these drugs from January 1, 1991 through December 31, 2004;
   or
   
   If you made reimbursements outside of Medicare Part B for any of these drugs from January 1, 1991 through December 31, 2004.

For more detailed information, please review the Notice
and other court documents on the links at the left.


What Is The Lawsuit About?

The lawsuit claims that BMS reported false and inflated AWPs for the BMS drugs at issue in this case. The lawsuit claims that the reported AWPs were used to set reimbursement amounts that were paid by Medicare and its beneficiaries and to set the reimbursement by private health insurers and consumers making percentage co-payments under private health insurance plans. The lawsuit asks the Court to award money damages to TPPs who made reimbursements under Medicare Part B for the drugs at issue or who reimbursed outside of Medicare Part B based on AWP.

BMS denies any wrongdoing and the Settlement is not an admission of wrongdoing or an indication that any law was violated. BMS has entered into the Settlement to avoid further expense and inconvenience.

How Do I Know If I Am Included In The Settlement?

Generally speaking, you are a member of one of the Settlement Classes if you reimbursed (or incurred an obligation to reimburse) any portion of an insured’s Medicare Part B co-payment for any of these drugs from January 1, 1991 through December 31, 2004; or you made (or incurred an obligation to make) reimbursements outside of Medicare Part B for any of these drugs from January 1, 1991 through December 31, 2004. You do not need to do anything to become part of one of these Settlement Classes, but you must complete the Claim Form in order to be able to receive money.

Excluded from the Settlement are (1) consumers who made flat co-payments, who were reimbursed fully for their payments, or who have the right to be fully reimbursed, and (2) BMS and certain related entities as defined in the Settlement Agreement. Also excluded from the Settlement are all federal, state, and local government entities in the United States, except any such governmental agencies or programs that made or incurred an obligation to make a reimbursement for a Class Drug as part of a health benefit plan for their employees, but only with respect to such payment.

Questions concerning the matters contained herein should be directed to the Settlement Administrator listed below.